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Harare - In a trading update released on Thursday, cement maker Pretoria Portland Cement (PPC) [JSE:PPC] said it has made its first payments totalling $32m towards funding commitments in the Democratic Republic of Congo (DRC).

The
company will continue to monitor cash requirements in the DRC closely,
and has achieved some success in reducing the need for additional
deficiency funding from the centre.

“Notwithstanding this, we continue to look at alternatives to further mitigate exposure to the DRC,” said PPC.

“We are also progressing well in advancing the refinancing and restructuring of the group debt maturing in June 2018,” it said.

The cement maker said it will focus more on the new operations in the DRC and Ethiopia, ensuring that they deliver to expectations while further optimising efficiency in the businesses.

PPC said cement sale volumes in the DRC are improving notably following a slow start, although market conditions in the country remain challenging.

“Monthly volumes have realised their highest level since commissioning two years ago and we have also launched bulk cement, the first offering of its kind in the Rwandan market."

Although cement production in Ethiopia only started in June 2017, more than 100 000 tonnes of cement had been pre-sold since February 2017, due to high demand. This is equivalent to annualised capacity utilisation of more than 60%.

Commenting on the proposed merger of PPC and AfriSam, the company said it continues to evaluate a potential merger. “Management is committed to unlocking long term sustainable shareholder value."